A face value cut of 60%. This is the request that Vittorio Grilli, head of the European intergovernmental task force, made to the creditor banks of Greece. A heavy sacrifice, just under three times the 21% set in July, as invoked by Germany. This came after a tough confrontation involving Angela Merkel, Nicolas Sarkozy and the director general of the IMF Chistine Lagarde, who did not hide his concern that such a heavy cut could have extremely serious consequences on the CDS front.
The amount of Greek bonds in the hands of the banks is 206 billion euros. Yesterday Greek banks suffered losses in the order of 20% on the Athens Stock Exchange.
